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THE VALUE OF PLATINUM
Strong Demand and Why It Will Continue
Article # : platinum161
Strong Demand and Why It Will Continue
New clean air legislation in the United States (Tier II Emissions Standards) and in many of the world’s fastest growing economies is significantly increasing the total amount of platinum group metals used in automobiles.
Platinum is essential for the wide range of products that are being consumed in nations that are experiencing rapid gains in incomes. Because of this, world platinum use per unit of world economic output has risen rapidly in the past decade.
Platinum jewellery has gone from being a thing of the art deco past to being all the rage in North America and China. The largest economy in the world and the largest country in the world are seeing tremendous growth in platinum jewellery demand. This is in addition to Japan's relatively stable consumption of the white metal for jewellery purposes. While growth has been strong, overall market share is still low - meaning that these trends of increasing demand are sustainable for some time to come.
Platinum is used in a rapidly increasing array of products, from industrial refrigerators to spark plugs. The small amount of platinum used in each product means that the firms that manufacture them and the consumers that buy them are relatively insensitive to significant increases in the price of platinum.
Investment demand by individuals around the world is rising. Many are attracted to the vastly improving fundamentals in the platinum market. In rising markets, platinum normally develops a significant premium over gold. Platinum has historically tended to be more expensive than gold because it is considerably rarer and has more extensive and irreplaceable applications.
Source: Platinum Guild